Unfair Claims Practice

Definition of "Unfair claims practice"

Peggy Sue Welch
  Keller Williams Realty

Abuse by an insurer in an effort to avoid paying a claim filed by an insured, or to reduce the size of the payment. The national association of insurance commissioners (naic) has developed model legislation requiring that claims be handled fairly and that there be free communication between policyholder and insurer. Many states have adopted unfair claims practice laws.

Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ